The total volume of mortgage applications dropped 3.6% for the week ended November 16, according to the Mortgage Bankers Association latest weekly survey released today.
The decline in applications was led by a 5% decrease in refinance applications and a 2% dip in purchase applications, signaling continuing weakness in the housing sector.
But overall, applications were up 9.8% compared to the same week a year ago, on an unadjusted basis.
Refinances made up 50.3% of all applications, up a single basis point from last week, while the percentage of loans that were adjustable-rate mortgages rose to 15.8% from 15.5% the prior week.
Interest rates showed little movement, with the 30-year fixed mortgage falling a single basis point to 6.18%, and the one-year ARM unchanged at 5.98%.
The Mortgage Bankers Association’s loan survey has been compiled every week since 1990, covering roughly half of all U.S. retail residential mortgage originations.
Freddie Mac also reported Wednesday that 30-year fixed-rate mortgages averaged 6.20% for the week ending November 21, down from 6.24% last week, marking the lowest rate since the week ending May 10, when rates stood at 6.15%.
Yesterday, the Commerce Dept. said permits to build homes hit a 14-year low, suggesting conditions in the industry would likely deteriorate.
Experts also believe that potential homeowners are becoming more hesitant to purchase a home as prices continue to fall throughout the nation.
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